Major Defence Procurement Approval

• 07 Sep 2024

Why in News?

Recently, India’s Defence Council approved military hardware procurement worth Rs 1.45 lakh crore, emphasizing indigenous suppliers for modernizing the forces.

Key Points

• Indigenous Procurement Focus: 99% of the funds will be spent on indigenous suppliers.
• Major Approvals:
  • 1,770 Future-Ready Combat Vehicles (FRCVs) for the Indian Army
  • Construction of seven additional Project-17B stealth frigates for the navy.
  • Acquisition of 26 Rafale-M fighters for INS Vikrant
• Additional Procurements:
  • Air defence fire control radars.
  • Equipment for cross-country mobility, such as forward repair team (tracked) vehicles.
  • Upgraded capabilities for the Indian Coast Guard, including Dornier-228 aircraft and next-generation patrol vessels.
• Procurement Categories:
  • Indian-IDDM (Indigenously Designed, Developed, and Manufactured)
  • Buy (Indian): Includes products with 50% or 60% indigenous content, depending on design and development.
• Self-Reliance Measures:
  • Phased bans on imports of weapons and subsystems.
  • Increased FDI limit from 49% to 74%.
  • Separate budget allocation for locally made hardware.
• 2024-25 Defence Budget:
  • Total allocation of Rs 6.22 lakh crore.
  • Capital expenditure of Rs 1.72 lakh crore, with Rs 1.05 lakh crore earmarked for domestic procurement.

Defence Acquisition Council

• The DAC is the highest decision-making body in the Defence Ministry for deciding on new policies and capital acquisitions for the three services (Army, Navy and Air Force) and the Indian Coast Guard.
• The Minister of Defence is the Chairman of the Council.
• It was formed, after the Group of Ministers recommendations on 'Reforming the National Security System', in 2001, post Kargil War (1999).